It’s Thursday, December 18. I didn’t expect this much news headed into the holidays…sheesh. Amazon is testing the legal limits of AI commerce with Perplexity. PwC is quietly documenting a reset in how hotel deals get priced. The Fed is nudging capital back into play just as owners rethink timing. DoorDash is experimenting with AI-led discovery while Airbnb runs into regulatory walls in Spain. Belmond is betting on craftsmanship over scale as Booking.com frames AI as expansion, not disruption.

🎧 Special shoutout to GWT Hotels’ Roberto Pacaccio for joining us on the Hotel Tech Insider podcast this week! Roberto and his team walk us through what it’s like to manage 5 independent hotels without a single front desk and how to master your P&L.

TOGETHER WITH MEWS

Still tracking RevPAR and calling it a strategy? Hotel success today demands more than legacy KPIs. Mews’ The New Era of Hospitality Metrics for GMs is your guide to the 11 modern metrics that actually move the needle.

  • Uncover Revenue You’re Missing: Learn why metrics like utilization, RevPAM, and daily guest spend reveal more opportunities than occupancy or ADR ever could.

  • Measure What Truly Matters: Track guest happiness, staff retention, and sustainability with practical, action-ready KPIs tailored for today’s challenges.

  • Make Smarter, Faster Decisions: Get clarity on portfolio-wide performance with metrics that align marketing, operations, and finance teams.

Whether you're running a boutique hotel or a multi-property portfolio, this report equips you with the insights top-performing GMs are already using to lead the industry.

GOING DEEPER

1. Amazon vs. Perplexity Lawsuit Could Shape the Future of Hotel Distribution

Amazon has filed a federal lawsuit against Perplexity AI over its Comet AI agent, accusing the startup of using an autonomous AI assistant to access its site and make purchases on behalf of users without clear disclosure and in violation of Amazon’s terms of service. The case revolves around whether AI agents can legally act like human users to complete transactions and interact with platforms without explicit agreement from those platforms, a dispute that may define the rules for agentic commerce.

🎯 Why it matters: The outcome of this lawsuit will ripple far beyond retail. In travel, autonomous AI agents are beginning to influence how consumers discover, compare, and book hotels. If platforms succeed in restricting or tightly regulating agent access, it could preserve traditional distribution channels (OTAs, brand sites) and maintain the current ecosystem where hotels control pricing, inventory, and direct guest relationships. Conversely, a ruling favoring independent AI agents could open up new pathways for third-party assistants to access and transact with travel inventory directly.

🔑 Key takeaway: Hotel executives should monitor this case closely as a bellwether for AI commerce. To future-proof distribution strategies, hotels should ensure their rate and availability data are structured for machine readability, invest in direct APIs, and diversify their visibility across platforms. The battle over who controls the booking interface and underlying data could shape travel distribution for years to come. Read More →

2. PWC: Average M&A Transaction Value 45% Less Than 2024

PwC’s 2026 Hospitality & Leisure Deals Outlook shows that traditional hotel M&A in 2025 was cautious, with total deal value and private equity involvement well below 2024 levels. However, targeted strategic transactions, particularly those that expand loyalty ecosystems, digital capabilities, and experiential offerings, have gained momentum, and deal volume climbed in late 2025 as corporate buyers sharpened their focus.

🎯 Why it matters: Hotels are no longer competing solely on room count or location; strategic assets that drive digital engagement, personalization, and loyalty are becoming the most sought-after targets. With investors placing a premium on technology that enhances customer experience and operational efficiency, M&A is increasingly a lever for modernization, not just growth. Firms willing to integrate AI, data platforms, and seamless digital infrastructure into their operations are more appealing to both strategic buyers and capital partners.

🔑 Key takeaway: Hoteliers should consider M&A and strategic partnerships as tools to future-proof growth, not just as exit or expansion mechanisms. Evaluate deals that bolster your tech stack (AI, personalization, loyalty platforms) and elevate guest engagement. Aligning acquisitions with a technology-enabled strategy may deliver stronger, more resilient revenue streams than room expansion alone. Read More →

3. Fed Rate Cut Points to Optimism for Hotels in 2026

The Federal Reserve’s recent quarter-point interest-rate cut is expected to spur hotel investment activity in 2026, according to industry leaders from JLL, AHLA, and other hospitality analysts. Lower borrowing costs could make refinancing, renovations, and acquisitions more attractive, particularly in strong urban and luxury markets where demand fundamentals remain optimistic.

🎯 Why it matters: After a period of stalled development and caution due to macroeconomic uncertainty and historically high rates, this easing offers a potential catalyst for renewed deal flow and liquidity. For hotels, both owners and operators, improved access to credit can unlock deferred CapEx, support strategic repositionings, and make portfolio optimization more achievable. Emerging investor interest, especially where pricing gaps exist between buyers and sellers, suggests 2026 could be a pivotal year for selective growth.

🔑 Key takeaway: Hoteliers should prepare now to capitalize on shifting investment dynamics. That means clarifying your asset strategy (renovation vs. rebranding), polishing performance metrics to attract capital, and aligning CapEx with revenue drivers (loyalty, tech, guest experience). With interest costs easing, owners with strong fundamentals and clear positioning may find lenders and buyers more receptive, making 2026 a year to convert planning into action. Read More →

 

TOOLS & TACTICS

⚒️ Hotel Tech Tools You’ve Gotta Try

Cloudbeds: All-in-one hotel management software at the speed of AI.

Tripleseat: Manage hotel group bookings, catering and event sales with AI.

Actabl: Turn powerful BI data into actionable insights that maximize profits.

Mews: A smarter PMS that cuts daily work across check-ins, payments, and rooms.

Canary Technologies: Powerful but simple AI powered digital guest journey platform.

MeetingPackage: Simplify MICE bookings and boost event revenue.

Sertifi: Streamline hotel check-ins and payments with secure digital solutions.

 

FREE DOWNLOADS

Trending content

To keep pace with changing guest needs and expectations, Linchris implemented Canary, transforming their operations to deliver exceptional guest experiences, increase revenue, boost employee satisfaction and much more.

Discover 11 must-track metrics for any General Manager looking to bring sustained success to their business in the new era of hospitality.

AROUND THE HOTEL INDUSTRY

Other hospitality happenings this week

📞 Restaurants are replacing staff-heavy call centers with voice AI for phone reservations.

Consumers are selectively paying more for premium experiences in travel, dining, and entertainment.

🍔 DoorDash is testing discovery-first dining with Zesty, an AI-powered social app.

🏘️ Spain is cracking down on overtourism by issuing a $75 million fine against Airbnb.

🌍 New EU climate targets will reshape costs and operations for airlines, hotels, and cruises.

🔍 U.S. border policy expands scrutiny with plans to inspect tourists’ social media histories.

🏨 Belmond is doubling down on craftsmanship while competitors chase scale, per LVMH’s luxury strategy.

🎧 Google is transforming everyday hardware by turning headphones into real-time language interpreters.

🤖 Booking.com executives say AI is less an existential threat and more an expansion opportunity.

⏳ Hotel tech leaders warn 2026 is a make-or-break year in the AI transformation cycle.

🔎 Google is testing richer results by merging formats inside AI-powered search overviews.

📸 AI-generated influencers are entering travel marketing, reshaping trust and authenticity.

📉 Privacy rules and signal loss are driving up costs across hotel marketing technology.

🛋️ Hotel design and technology are converging to elevate the guest experience.

🧠 AI companies are rallying around shared standards like Anthropic’s Model Context Protocol.

🏛️ Shareholders approve a key ownership move for Mandarin Oriental’s parent company.

🚗 AAA forecasts record demand despite higher prices in its year-end holiday travel outlook.

⚙️ Deliverect is expanding automation with a new AI agent library for restaurants.

 

HOTEL TECH INSIDER PODCAST
GWT Hotels' Revenue Leader on Total P&L Ownership

What if removing your front desk—and doubling down on the right integrations—was the key to keeping your hotel profitable after COVID?

In this episode of Hotel Tech Insider, Roberto Pacaccio, Revenue & Expense Manager at GWT Hotels, shares how a five-property independent hotel group in San Francisco survived near-shutdown, rebuilt its operating model, and lowered its breakeven point by rethinking technology from the ground up.

  • How GWT Hotels eliminated traditional front desks without sacrificing service: Roberto breaks down the exact tech stack—including PMS, digital keys, guest messaging, and centralized support—that allows four independent hotels to operate front-desk-free while still offering 24/7 guest assistance.

  • Why integration matters more than “best-of-breed” tools: Learn how choosing tightly integrated systems (PMS + digital keys + messaging + dynamic pricing) reduced staff workload, training complexity, and operational errors—and why fragmented tools nearly derailed adoption early on.

  • The revenue lesson most hoteliers miss: lowering breakeven beats chasing ADR:  Roberto explains how automation and labor-light operations materially lowered per-room breakeven costs—and how dynamic pricing rules tied to occupancy replaced manual rate shopping entirely.

GWT Hotels didn’t modernize to “innovate”—they modernized to survive. From replacing physical metal keys to centralizing five hotels under one operational hub, this episode offers a rare, honest look at what tech adoption actually looks like for small independent hotels with no margin for error.

If you’re rethinking how your hotel operates in a labor-constrained world, this episode is a must-listen.

👉🏼 Check out the interview on Apple Podcasts or Spotify.

Want to advertise with us?

💌 Sponsor this newsletter (here) or a dedicated eblast (here) to our 65k subscribers

👀  Run a site takeover campaign (here) to drive downloads of your lead magnet

⭐️ Become a premium member, join the best companies in the industry (here)

🎯 Set up a PPC campaign to drive high-intent traffic from our homepage and category pages straight to your website in under 3-minutes (here)

Thanks for reading! If you have any questions you can contact [email protected]

Disclosure: Some things in this newsletter may be a sponsored post or CITYKEY LLC (D.B.A “Hotel Tech Report”) may be getting a small commission if you sign up / fill out their form or CITYKEY LLC might own a percent of the business. In particular, but not always, those sponsored or commissioned or owned posts might have an * in the subject headline. Read our privacy policy here.